Chapter 18
The Markets For the Factors of Production
TRUE/FALSE1.
If the marginal productivity of the sixth worker hired is less than the marginal productivity of the fifth worker hired, then the addition of the sixth worker causes total output to decline.ANS: F DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Marginal product of labor MSC: Interpretive
2. In 2008, the total income of all U.S. residents was approximately $120 billion.ANS: F DIF: 1 REF: 18-0 NAT: Analytic LOC: Labor markets TOP: Income MSC: Interpretive
3.
In order to calculate the value of the marginal product of labor, a manager must know the marginal product of labor and the wage rate of the worker.ANS: F DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Value of the marginal product MSC: Interpretive
4.
Let L represent the quantity of labor and let Q represent the quantity of output. Suppose a certain production
function includes the points (L = 7, Q = 27), (L = 8, Q = 35), and
(L = 9, Q = 45). Based on these three points, this production function exhibits diminishing marginal product.ANS: F DIF: 2 REF: 18-1 NAT: Analytic LOC: The study of economics, and definitions of economics TOP: Diminishing marginal product MSC: Applicative
5.
When a competitive firm hires labor up to the point at which the value of the marginal product of labor equals
the wage, it also produces up to the point at which the price of output equals average variable cost.ANS: F DIF: 3 REF: 18-1 NAT: Analytic LOC: The study of economics, and definitions of economics TOP: Competitive firms | Profit maximization MSC: Applicative
6. The demand for computer programmers is inseparably tied to the supply of computer software.ANS: T DIF: 1 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Interpretive
7.
If Firm X is a competitive firm in the market for labor, it has little influence over the wage it pays its employees.ANS: T DIF: 1 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Interpretive
8.
The idea that rational employers think at the margin is central to understanding how many units of labor they choose to employ.ANS: T DIF: 1 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Interpretive
9.
For competitive firms, the curve that represents the value of marginal product of labor is the same as the demand for labor curve.ANS: T DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand | Value of the marginal product MSC: Interpretive
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1220 ? Chapter 18/The Markets For the Factors of Production
10. The value of the marginal product of labor can be calculated as the price of the final good minus the marginal
product of labor.ANS: F DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Value of the marginal product MSC: Analytical
11. To compute the value of the marginal product of capital, you should multiply the market price of the good by
the marginal product of capital.ANS: T DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Value of the marginal product MSC: Analytical
12. A profit-maximizing competitive firm will hire workers up to the point at which the wage equals the price of
the final good.ANS: F DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand | Value of the marginal product MSC: Analytical
13. A profit-maximizing competitive firm will hire workers up to the point at which the wage equals the marginal
product of labor.ANS: F DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand | Marginal product of labor MSC: Analytical
14. Technological advances can cause the labor demand curve to shift.ANS: T DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Applicative
15. In the United States, technological advances help explain persistently rising employment in the face of rising
wages.ANS: T DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Applicative
16. The term Luddite refers to “tekkies” or people who are the first to adopt new technological advances.ANS: F DIF: 1 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Definitional
17. Labor-saving technological advances increase the marginal productivity of labor.ANS: F DIF: 1 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Definitional
18. Labor-saving technological advances decrease the marginal productivity of labor.ANS: T DIF: 1 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Definitional
19. Labor-augmenting technological advances increase the marginal productivity of labor.ANS: T DIF: 1 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Definitional
20. Labor-augmenting technological advances decrease the marginal productivity of labor.ANS: F DIF: 1 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Definitional
Chapter 18/The Markets For the Factors of Production ? 1221
21. An increase in a product’s price will shift the labor demand curve for that product to the left.
ANS: F DIF: 1 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Definitional
22. The quantity available of one factor of production can affect the marginal product of other factors.ANS: T DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Marginal product of labor | Factor markets MSC: Applicative
23. In a competitive market for labor, the equilibrium wage always equals the value of the marginal product.ANS: T DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Value of the marginal product MSC: Applicative
24. From 1960 to 2000, inflation-adjusted wages increased by 131 percent in the U.S. As a result, firms reduced
the amount of labor they employed by nearly 20 percent.ANS: F DIF: 2 REF: 18-1 NAT: Analytic LOC: Labor markets TOP: Labor demand MSC: Interpretive
25. The labor-supply curve is affected by the trade-off between labor and leisure.ANS: T DIF: 2 REF: 18-2 NAT: Analytic LOC: Labor markets TOP: Labor supply MSC: Interpretive
26. The opportunity cost of leisure is impossible to measure, since we can't measure leisure time in dollars.ANS: F DIF: 2 REF: 18-2 NAT: Analytic LOC: Labor markets TOP: Labor supply MSC: Interpretive
27. The labor supply curve reflects how workers' decisions about the labor-leisure tradeoff respond to changes in
the opportunity cost of leisure.ANS: T DIF: 2 REF: 18-2 NAT: Analytic LOC: Labor markets TOP: Labor supply MSC: Interpretive
28. Labor supply curves are always upward sloping.ANS: F DIF: 2 REF: 18-2 NAT: Analytic LOC: Labor markets MSC: Interpretive
TOP: Labor supply
29. When an individual’s income goes up, that individual may choose to supply less labor, resulting in a
backward-sloping labor supply curve.ANS: T DIF: 2 REF: 18-2 NAT: Analytic LOC: Labor markets TOP: Labor supply MSC: Interpretive
30. The supply of labor in any one market depends on the opportunities available in other markets.ANS: T DIF: 2 REF: 18-2 NAT: Analytic LOC: Labor markets TOP: Labor supply MSC: Applicative
31. Movements of workers from country to country can cause shifts in the labor supply curves for both countries.ANS: T DIF: 2 REF: 18-2 NAT: Analytic LOC: Labor markets TOP: Labor supply MSC: Applicative
【国际经济学专题考试试卷十八】The Markets For the Factors of Production
